Chapter 8. The Ideal Butterfly Pattern
Bryce Gilmore discovered the structure of the Butterfly pattern in his Wave Trader software program. Although his interpretation of the structure encompasses a multitude of Fibonacci combinations, I believe the specification of each point within the structure is essential to be able to successfully trade the pattern. As the example of the Crab pattern demonstrated, the alignment of pattern points is critical. The Butterfly pattern is no different, as specific alignments within this 5-point extension structure are the key to finding the best opportunities.
In my experience, I believe an ideal Butterfly pattern requires a specific alignment of Fibonacci measurements at each point within the structure. Most ...
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